On April 11, Michigan-based Mercantile Bank
- Net income decreased 13.1% to $4.3 million due to the difficult interest rate environment and slowing economy.
- Efficiency ratio deteriorated to 55%, primarily reflecting the decline in the net interest margin and increased operating costs.
- While non-performing assets rose to 0.60% of the total assets, management is seeing higher recoveries, which could improve this ratio.
- Mercantile Bank carries a lowly one-star rating in Motley Fool CAPS. CAPS players who are bearish on this company are also bearish on Homebanc Corp.
(NYSE:HMB) and Thornburg Mortgage(NYSE:TMA)
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Total Revenue |
$14,872 |
$15,117 |
(1.6%) |
|
Net Interest Income |
$14,484 |
$15,099 |
(4.1%) |
|
Net Profit |
$4,283 |
$4,929 |
(13.1%) |
|
EPS |
$0.53 |
$0.61 |
(13.1%) |
Get back to basics with a look at the income statement.
Ratio Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Net Interest Margin |
3.07% |
3.51% |
(0.44%) |
|
Efficiency Ratio |
54.99% |
48.99% |
6.00% |
|
Nonperforming Assets / Assets |
0.60% |
0.46% |
0.14% |
|
Return on Average Assets |
0.84% |
1.07% |
(0.23%) |
|
Return on Average Equity |
10.04% |
12.74% |
(2.70%) |
Find out more about bank performance ratios.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Investments |
$205,227 |
$188,169 |
9.1% |
|
Loans |
$1,748,838 |
$1,612,351 |
8.5% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Deposits |
$1,686,157 |
$1,482,219 |
13.8% |
|
Total Liabilities |
$1,914,100 |
$1,738,115 |
10.1% |
Learn about bank assets and bank liabilities.
Related Foolishness:
- Mercantile Bank, Yield Curve: Both Flat
- Fifth Third's Big Bath
- Unique Data Point at Marshall & Ilsley
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